2013 (Taxation) Bar Exam Questions: Essay Question 12

[Discuss/answer the question below. Or see Taxation Instructions; Taxation Essay Questions: 12, 3, 4, 5, 6, 7, 8, 9, 10 and 11; Taxation Multiple Choice Questions: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19 and 20; See also 2013 Bar Exam: Information, Discussions, Tips, Questions and Results]

XII.

You are the retained tax counsel of ABC Corp. Your client informed you that they have been directly approached with a proposal by a BIR insider (i.e., a middle rank BIR official) on the tax matter they have referred to you for handling. The BIR insider’s proposal is to settle the matter by significantly reducing the assessment, but he will get 50% of the savings arising from the reduced assessment.

What tax, criminal and ethical considerations will you take into account in giving your advice? Explain the relevance of each of these considerations. (9%)

6 comments

  1. hindi ko maalala ang sagot ko dito pero in-echos-echos ko na lang rin ito tulad ng ginawa ko sa karamihan ng mga tanong sa Legal Ethics!

  2. yup si J. Brion po.

    afaik, he was the one who required na maglagay ng isang legal ethics question per exam subject other than the Legal Ethics exam itself.

  3. Tax consideration-only the commisioner may enter into compomise and there are qualifications. Criminal consideration- bribery and corruption of public officer. Ethical consideration-LAWYERS OATH. Hahaha

  4. Tax consideration – discussion on Tax Evasion.

    Criminal – Tax Evasion as a crime under the NIRC, punishable by imprisonment etc.

    Ethical – Lawyer’s Duty to Client to give the best legal advice and avoid the possibility of the client committing a felony. Also to give the best legal service to the client, thus advice the client to discuss directly with BIR to reduce the tax due (a discussion on Tax Avoidance). Lawyer’s duty as well to society to see to it that the laws of the land are upheld and that the State succeeds, a bit on taxation as the lifeblood of the nation and the implication of tax evasion.

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